Auto Insurance Rates for the Second Quarter of 2010

The Government has passed regulations to enact automobile insurance reforms effective September 1, 2010.  The reforms will provide consumers with more choice and flexibility to purchase coverage that best meets their protection needs and budgets.

All auto insurance companies were required to file new rates with FSCO in April that took into account these reforms. These filings have now been approved and the following table reflects the changes to auto rates approved in the second quarter of 2010 and effective September 1, 2010.

Rate applications approved during the second quarter of 2010 (April 1, 2010 to June 30, 2010) averaged -1.03%, based on the entire market.

In the second quarter of 2010, for the 100% of the market that had rate changes approved, the average rate change was -1.03%, when weighted by market share.

The rate changes approved in the second quarter of 2010 become effective in the third quarter of 2010. 

The rate changes approved in 2004, 2005, 2006, 2007, 2008 and 2009 were -10.60%, -2.43%, -1.27%, +0.55%, +5.59% and +8.77%, respectively, for the entire market.

The approved rate change shown for each insurance company is the average for that particular company. The impact of a rate change on an individual consumer will vary depending on where the consumer lives, the type of car he or she is driving, and other risk characteristics.

FSCO will continue to ensure that insurance companies’ rate changes are reasonable and justified, and that the rates insurers charge are balanced with their ability to meet their future claims costs.

1. Auto Reform Filings
2. On behalf of Ontario Mutuals